Earned Value Management 1: Last Updated August 07,2018 -Version 2-1-4a

How much money has been lost throughout the world by badly managed public infrastructure investments? The U.S. GAO (2009) provides evidence that the losses can be huge. They recommend using Earned Value Management (EVM) best practices to stem these losses and to achieve the public benefits needed from the investments. They define EVM as follows: “Earned value management goes beyond simply comparing budgeted costs to actual costs. It measures the value of work accomplished in a given period and compares it with the planned value of work scheduled for that period and with the actual cost of work accomplished. … “

EVM best practices integrate budget, scheduling, and risk analyses. A key requirement of EVM is to measure budget variances and scheduling variances. Budget variances measure the costs (and benefits) of work planned versus actual work completed. Scheduling variances measure the amount, quality, and timeliness of work planned versus actual work completed. EVM measures variances in the value of work planned versus actual work completed. This reference provides examples of how DevTreks measures these variances using LCA, NPV, and ME tools. DevTreks’ best practices extend EVM to include Outputs (work progress), Outcomes (technical performance), Benefits (earned value), and ME indicators (performance effectiveness). The U.S. GAO (2009) and Life Cycle Assessment 1 and 2 references should be read prior to this reference.

This shows the results of running a comparative Progress Analysis for a railroad track investment.

This reference also demonstrates that, in some instances, summary data can supply sufficient information to make informed decisions and increase the transparency of cost benefit data. This can be particularly helpful when the general public is expected to be an important audience for the data.

210 Test

Test of building lists.

1. List Member 1: List Member 1 test
2. List Member 2: List Member 2 test
3. List Member 3: List Member 3 tests

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